Stop the fakers tarnishing a glittering UK success, says Harrods boss

Britain's best-known department store is in the midst of a massive £250 million refurbishment.

Michael Ward, managing director of Harrods, has already overseen a string of dramatic changes, from multi- million-pound designer escalators to a coruscating chandelier for the store’s rear foyer by renowned glass designer Dale Chihuly. A seven figure sum is reputed to have been spent on the elaborate light fitting.

But there is more to come. This week the store opens its top-floor Georgian Restaurant, which it hopes will become a go-to venue for lunches and afternoon tea. Later this summer it will unveil Shoe Heaven, a vast footwear emporium that is expected to be one of London’s biggest shoe shops.

Revamp: Harrods chief Michael Ward

It is a huge investment on behalf of Harrods’ owners, Qatar Holding, which bought the landmark site from previous owner Mohamed Al Fayed in 2010 for £1.5 billion.

Ward is keen to defend Harrods not just against the legitimate competition, but also against the conmen of the internet. Like all luxury-brand businesses, Harrods is concerned by the booming online trade in forged prestige items, from handbags to watches.

‘Take any internet search engine, type in a fake brand and you will get results. That is totally unacceptable,’ declared Ward, who wants to see stronger action from the authorities and the internet industry on the issue.

‘We don’t ask for subsidies. But there are certain things we do ask for, such as the protection of intellectual property and a level playing field in the digital arena. If you speak to any of the service providers they will wash their hands and say, “Ah, but we’re only a search engine and we can’t do anything about this”. It’s irresponsible,’ he said.

Ward was in Strasbourg last week discussing the issues of counterfeiting with policy makers and other luxury brands. ‘All these companies making vast profits in overseas tax havens have the resources to do something about this. They should be penalised or legislated against to encourage them to act,’ he said.

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Others, too, are concerned and are taking steps to stamp out the counterfeit threat. Last week an agreement between eBay and LVMH, the owner of luxury brands including Louis Vuitton and Moet Hennessy, settled a legal dispute between the two corporate giants and provided a small victory for prestige brands to protect their intellectual property.

Made in Britain: Model Cara Delevingne carries a Mulberry bag

The luxury trade is an increasingly significant industry for Britain and other European states. About ten per cent of Europe’s exports are luxury goods – heavily weighted towards France and Italy, but increasingly benefiting the UK.

Walking around the London store it is easy to see why brands and retailers would be so concerned about the damage counterfeit goods can inflict. The fashion department, including the Fashion Lab launched last year to attract younger shoppers, accounts for the bulk of sales.

But the really eye-watering price tags are to be found in other areas such as the art department, where oil masterpieces are for sale, and the jewellery department.

There British brands such as Boodles and Theo Fennell stand side by side with the world’s most expensive and ostentatious – something Ward insists is based on commercial demand rather than merely a desire to promote UK companies.

‘Demand for luxury is growing,’ he said. ‘What makes Harrods stand out is that we seek to stretch the boundaries of imagination for that affluent customer. In our jewellery hall we have the most spectacular diamonds and in the watch department we have the Rolex Daytona in white gold, rose gold and platinum, to be sold today, not to order for three weeks’ time.’

Those departments have experts who can talk through the product and its provenance, he said.But Ward said action against counterfeiting was not simply a matter of protecting the interests of the rich by maintaining the exclusivity of brands. Manufacturing luxury products and the demand for British-made craftsmanship abroad is giving the UK’s battered manufacturing sector a reason to hold its head up once more, despite the vast majority of cheaper goods being made in such countries as China, Bangladesh and Vietnam.

‘We need to focus on how the luxury industry is contributing to employment and not focusing on how it is a rich man or woman’s toy. This is about economics not about envy,’ he said. ‘Don’t look at the Rolls-Royce, look at the person trained to sew and manufacture the leather. Look at the person who designs the car, the mechanics and apprenticeships we create across industries.’